In subrogation, your insurance company files a claim against the at-fault driver to recover what it paid to you. Subrogation in California can apply anytime an insurance carrier makes payments to an individual who is not primarily at fault for an accident.The subrogation process is the right of an insurance company to recover the amount it has paid on a claim from the at-fault party. California law states your insurance company must file a subrogation claim within three years of the accident that caused your injuries. Subrogation is the legal process through which an insurance company steps into the place of the insured and recovers costs from a third party. Subrogation is a legal right that allows insurers to recover their costs from the at-fault party. Simply defined, subrogation is the legal right to pursue legal action against a third party for reimbursement of insurance loss. Subrogation letters mean your health insurer knows you had an accident. Learn how State Farm may try to recover a claim payment when another party is primarily at fault for your damages. Is an insurance carrier required to notify MediCal?